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>> good morning everyone. i am patti ann browne. >> happy new year. i am heather cheryledilders. it is january 1st, 2013. thank you for watching "fox & friends first". we begin with fox news alert. shy of the deadline the senate passed a deal to avoid the fiscal cliff. >> that goes to the house for a vote. doug mcelway is live with what it all means. you have been up all night so have i, what do we have? >> little more than 2 hours after the deadline passed they passed a stopgap fiscal cliff bill that spares the vast majority of americans tax increases. it passed with broad bipartisan support the final vote was 89 yai's 8 nay's. they pent went to the floor to

describe a flawed bill one of the best they could craft given the different priorities over the two parties for the last couple years. >> shouldn't be a model of how we do things but i think we can say we have done some good for the country. we have done some good for the country. we have taken care of the revenue side of this debate. working through the night we have reached a deal with sen more mcconnell. i have said all along the most important priority was to pa protect the middle class families. >> it raises tax rates on incomes over 400,000 for individuals 450,000 for couples. it blocks the spending cuts for two months to the military and other government programs. that was a huge concern. it extends unemployment benefits for the long-term jobless for ner year and prevents 20 percent cut in fees for doctors who

treat medicare patients and it also prevents a spike in milk prices that would have happened as a result of the expiration of the farm bill. the president read a statement which read in part quote neither democrats and republicans got everything they wanted this is the right thing to do for our country and the house should pass it without delay end quote. whether this goes as smoothly as the house remains to be seen. there are conservative republicans elected to office on promises to cut government spending. this bill does very little of that. there are 620 billion of new tax hikes only 15 billion in spending cuts. that is not going to be appealing to a lot of house republicans. >> doug mcelway reporting live for us. thank you. joined by chad with a look at what happens. you believe it is not at all certain this bill is going to

pass in the house? >> yes. the house speaker and the rest of the republican leader team put out a mixed statement saying they want to review this they want the public to look at this. somehows speaker john boehner is under no obligation to bring this up. they could bring it up and possibly change it and ping pong it back to the senate. this is far from over. there's a lot to do here. the one plus on this side might be the fact there is so much in this bill doug was talking about it keeps milk prices low the dodoc fix physicians who see medicaid patients and things. there are a lot of things there a lot of members are for. i have to caution everyone there was a vote december of last year on renewing the payroll tax cut which passed overwhelmingly again a very similar margin in the senate. 89 votes in that particular bill and they move it had over to the house and john boehner and house

republicans had a conference call on a saturday afternoon and they got their head handed out. everybody was mystified by this. they said how can a senate possibly pass a bill with such an overwhelmingly margin and send it over to the house and have such trouble. the whole social security tax issue is a big sort of hidden tax. right now it would be in effect for all income tax levels. there's a 2 percent cut in the social security payroll cut. what this means is someone who makes about 50,000 dollars a year about a,$000 less to spend this year. this is the kind of thing it seems like the house would really object to. >> not only that but also the spending cuts, these conservatives in the house tea

party loyalists they want deeper cuts. it was something they haven't gotten nearly as far as they would hope. there's something in this bill that would go around. maybe if they didn't want to vote for it they said i voted for it because of milk the he is you state t-- the estate tax. >> then there was a big compromi compromise on the tax pill it raises rates on individuals making 400,000 a year and households making 450. their income tax would go from 39 percent to 39.6 and capitol gains tax goes from 15 percent to 20 percent. some house republicans say it is going to stifle the economy. >> there the republicans wanted

a higher threshold. they wanted it to go up to those who made a million dollars. those making above a million would see the tax hike. there are people there who are going to look at that and say i don't like that it's a tax hike for a lot of people. the president did come up with the level that he had initial stlabed 200 to 250,000 dollars. this is legislating you have to compromise. that's what they who to do here. >> chad thank you so much. any time. >> time now for your 5@5:00. the top five making news for you at this hour. two people gunned down in the middle of new year's celebrations in sacramento, california. a fight broke out and spilled into the streets. the area pause packed for a

fireworks display. three others were injured. she is the daughter of a prominent new york city doctor. he's an ook pie wall street ooc street organizer. now they are under rays for having explosives and a terrorist encyclopedia in their apartment. she went into labor after being raised. she has not yet been arraigned. her boyfriend aaron green is in jail without bail. they were tipped off after another couple who met them saw the items in their home. a report says the white house should have said the benghazi attack in benghazi was tearrism. a group criticized the president for inconsistent explanations. it was the fbi, cia and other agencies made changes to the talking points on the attack not the white house. following the attack susan rice

says she used the talking points to explain the attack may have been a spontaneous protest that got out of hand. secretary of state hillary clinton spent another night in the hospital after a blood clot in her brain. it is between the skull and brain behind her right ear. it did not cause a stroke or brain damage. it was discovered during a follow up exam after a concussion from a fall. she is making excellent progress and is expect to do make a full recovery. people all over the country range it in in style in atlanta. they dropped their 800 pound peach that's a tradition since 1889. didn't stop them from performances and fireworks. in baltimore fireworks lit up the harbor to briring in 2013.

how did you or what did you do to ring in the new year? send us your comments. go to fox friends first or foxfriendsfirst@foxnews.com we will read them later in the show. >> live look at times square that's where cleanup from last night's new year's eve festivities are still underway. estimated 2,000 pounds of confetti flew through the air in times square as the ball drops that means a lot of sweeping up to do. >> how the crews will tackle that cleanup. happy new year, robert. >> same to you. good morning everyone. i tell you what, every year it's a small miracle what these department of sanitation workers

can do out here. right after the ball drops they hit the streets and they start cleaning up some of that confetti you spoke about. you can see 2013 up there on the big monitor. some of the crews cleaning up along broadway. you look at some stretches of road out here you wouldn't even know there was the biggest party in the world a few hours ago. as soon as the ball dropped the crews hit the streets. about a million people packed times square to hear performances from artists including psy of gingham styang and tailor swift. happy new year to you both. >> happy new year. we are kicking off the new year with freezing temperatures. for your first degree weather

update we return to janice dean. happy new year to you. >> happy new year. a cold start to the new year in a lot of places. look at the current temperatures minus 1 in indianapolis 8 in rapid at th rapid city. crews clean up 7 in denver even 45 in los angeles. cool for a lot of folks. we have a storm system a weak storm system moving through the ohio river valley pushing across the southeast. mainly a raiven vent as you h d head -- rain event as you head toward bam -- alabama. a calm forecast for most. you have the snow, 37 for us in new york city. 17 in far go. quiet day looking at leftover

snow across the northern rockies and central plains. back to you. happy new year, thanks. the time 12 minutes after the hour the senate voted to de dmriens see questions tore bill. what does it mean for national security. ool ool why you may no longer be able to find a certain bulb the next time you go shopping.

>> 14 after the hour. some quick headlines. it was a year long pain at the pump for americans that reached an all-time high. from him a says the nati-- aaa gallon of gas was $0.09 higher

than the previous record. bad weather and the tension in the middle east drove the prices up. lights out for 7 five-watt indan december sa -- incandescent bulbs. they can finish clearing out their stock but they will be phased out by energy efficient bulbs. the newer more efficient are more expensive. senatorsable to agree on taxes but not spending cuts. the bill heading to the house does not deal with the defense see questions tore cuts. instead they delayed on billion dollar spending cuts for two months. what does the department of defense between now and then. a senior fellow for center of add vabs-- advanced study joins now. long night. >> that's right. happy new year. >> happy new year to you, too. not so much for all of the military members. this delay for two months

$109 billion worth of across the board spending cuts for the pentagon and domestic analeses this week. the cost of 24 billion for spending cuts and revenues for converting traditional individual retirement accounts on to roth ira's. getting into the weeds of it how is this going to effect our military members? >> military members won't see any direct effect. you will see federal employees the sworn civil servants and contractors affected most directly. right now we are talking about a fwhont kicking the can down the road. with that said there was no clear path forward. the pentagon completely blew this off. they were not prepared for anything having to do with the cuts. they did not do budget offsets talking about getting down into the wings. the offsets are those things you can take cuts on and not suffer degradation of options. you can kick that down the road

to be funded. fundamentally we are not seeing a relook or reorganization of the department of defense since 1947. secretary of defense pineda put out this 5 point opinion piece for the failure of the pentagon to do this. president obama called benghazi a result of sloppy thinking. we have sloppy thinking going on at dod not trying to figure out what is best to do regarding these cuts as well as to make an effective defense. >> military pay is exempt from sequestration. the budget analysts yourself expect widespread furloughs of dod civilians to pay for the military operations. >> that's right. we are looking at actual cuts and capability. no one thought this through no one thought we should cut the construction costs of expanding military fashion illities. because the loss is 10 percent

across the board that means 10 percent across the board. that we have to do is get it right. figure out what needs done where these offsets can come from and do the hard things which they didn't do up until now. >> that's the question what should be done first because the sequestration calls for 500 billion in defense spending cuts that's about 50 billion annually. which do you expect to come first what do you think should come first? >> you have to look at high-tech programs regarding research and developing. we are way ahead of anybody. you have to look at operationally does it make sense to have this basis forward. you talk about the brac thing depends on national security act of 1947. we won the cold war we need to restructure do things which are effective not expensive. we continue to layer things. nobody wants to be held accountable regarding making hard decisions to streamline and

prepare the defense department for the 21st century. >> thank you for joining us. appreciate the insight. 19 after the top of the hour. still ahead a new and explosive warning about laptops and flying. we will explain next. plus we have all heard of ringing your own beverage but ring your own pot that's what's happening in one state and dwraes legal. -- yes, it's legal.

>> welcome back. it is 23 minutes after the top of the hour. starting today new safety rules kick in for using lithium batteries. they can spontaneously come bust on claims that they are over heated or they are damaged. batteries are believed to be link to do two cargo crashes in the last two years. the state of texas can now cut off all funding to planned parenthood. the state does not have to give money to doctors and clinics to support abortion. they banned using state funds for abortion. it continues to reimburse planned parenthood to poor women. secretary of state hillary clinton fight ago potentially deadly blood clot in the brain. john huddy has the latest. >> secretary of state clinton was hospitalized after doctors

found a blood clot during a routine mri. she suffered a concussion a few weeks ago after falling and hitting her head. h this is a spot between the brain and right ear. it did not result in stroke or neurological damage. she posted messages on facebook wishing her a speedy recovery as the new york city mayor michael bloomberg. >> she is made an enormous contribution to the country and will do exactly the same thing in the future. i don't know how but hillary is certainly nobody that puts their feet up she is always been a doer and has enormous respect from everybody and anybody. the 65-year-old clinton is treated with blood thinners and will be released from the hospital once the medication dose has been established according to her doctors.

she is in good spirits engaging with her family p and her staff. >> she is expect to do spend the next couple days at new york presbyterian hospital. again her doctors say she is making excellent progress and is expected to make a full recovery. in washington heights, john huddy, fox five news. the time 25 minutes after the hour. still to come lawmakers with a ban on plastic bottles. the companies paying the price. >> on this day in history in 1902, the very first football game was played in pasadena before it is still played today. michigan verses stanford. michigan won 49-0.

>> good morning i am heather cheryleds. >> i am patti ann browne. >> thank you for watching fox and friends first. the white house and congressional leaders reaching a deal that would avoid the fiscal cliff just ahead of the new year deadline.

>> the senate passed it it now goes to the house and doug mcelway is in washington, d.c. to break it all down for us. good morning again, doug. >> this margin of victory was a surprise to many it passed overwhelmi overwhelmingly 89 to 8 in the senate. shortly after the vote was taken the leaders took to the floor to describe a flawed bill. one that was the best we could achieve in such a polarized political atmosphere. >> middle class families will wake up today to the assurance their taxes won't go up $2,200 each. they have a plan how they played for groceries car payments all during next year. it is time to get serious about reducing washington's out of control spending. that's the debate american people want it's a debate we

will have next it is a debate republicans will be ready for. >> they do little for a bigger victory against democrats. i am willing to do it but tonight's agreement ensures that going forward we will continue to reduce the deficit through a combination of spending cuts to revenues through the wealthiest americans. the bill moves on to the how is that must pass it before wednesday the third of january when it 114th senate will pass a higher bill. >> what else is in the bill,

dog? doug? >> it raises tax rates on 400,000 for individuals 450 per couples. it blocks spending cuts for two months for military government payment for people in the military and defense related programs people associated with that are breathing a big sigh of relief it extends unemployment benefits for long-term jobless for ner year. it preventses 20 percent cuts in fees for doctors with medicare patients and would help with a sniek gas prices with the expiration of the farm bill. that's all good news. i wanted to ask you one more thing about the spending cuts. we heard mcconnell saying that will be expressed in the fewer. is there guarantee that will happen? we are looking at a 41 percent ratio. it can happen all they want there will be progress undoubtedly in that regard. i don't see it moving into the

senate and certainly nothing the president seems to have said indicates he's much interested in this either. so it could be something that passes in the house than in the house. >> doug mcelway reporting live from washington. now for your 5@5:30. the top five stories making news at this hour. the good news the senate has approved the fiscal cliff deal the bad news taxes are going up regardless thanks to obama care. five new taxes due to obama care will start going into effect. they impact everything from healthcare costs to the cost of medical devices. the congressional budget office says americans will end up paying $1 million. the deadly attack in benghazi was tearrism. cia and other government agencies that made changes to the talking points on the attack

not the white house. following the attack u.n. ambassador susan rice says they used the talking points may have been a spontaneous protest that got out of hand. netflix users can now share every movie they have err watched with facebook plans. congress passed a bill allowing netflix and other video streaming sites to share viewing history. users will have the opportunity to opt in or out of the social sharing feature. colorado had the first recreational pot club. months after it became legal private members only clubs popped up all over the state. it prohibits public smoke sgug include private clubs. they have an admission fee of $30 and they have to bring their own pot. countries all around the world brin new year vatican city holding a special mass to celebrate.

>> pope benedict xvi kicking off the year with a mass consisting of prayer and song. the holy ceremony kicked off at 3:30 this morning at saint peters basilica in vatican city. that is your 5@5:30. well before you leave the house this morning let's get your first degree weather update from with janice dean. >> how are we starting off this 2013? >> chilly for a lot of folks. look at the temperatures across the upper midwest the northern plains below zero. oh my gosh. minus 14 in international falls. the windchill what it feels like when you are not protected head outside with the winds feels like minus 28 at international falls. we are starting off the new year with snuggle weather. we have a system moving across

the south across the bugulf coa mainly a raiven vent could see an inch to an inch and a half. not a major system that will disrupt a lot of things. a lot of people have the day off. we have snow outside of the ohio val leaned western great lakes. we could see leftover snow across the northern rockies. we have ow new year's eve logo. a lot of people are celebrating at this point. here are your eyhighs for new year's day. 17 minneapolis 37 in new york. 29 in kansas city, 48 dallas. los angeles a little cooler for you 64 as you head through the day today. travel forecast if you are traveling looking good for most of the major cities. it is chilly, though. that's the main take home point is make sure that you are bundled up dressed accordingly. back to you patti ann and heather. all right janice, thanks. still new year's eve in hawaii.

new time for your starting lineup. your top sports stories. it was a battle of the tigers in the chik-fil-a bowl. it took a last second score to prove who was king. the lsu tigers led by 11 points in the 4th. this game winning 37 yard field goal as time expires hats off an expressive come back by the clemson tigers. they win 25-24. speaking of bowls preps for the 124th rose bowl parade wrapping up in pasadena. crews put the finishing touches on the many elaborate floats. about a million people are expected to watch the parade. as for the game stanford and wisconsin kickoff at 5:00 p.m. with the nhl season skating on thin ice the player's association will meet again today to try to work out a collective bargaining deal. it will be reached by next friday to save the season. time now to entertain this.

hugh heffner is now a married man. he and 26-year-old crystal harris tied the knot last night, where else but at the playboy mansion when the clock struck 12. are you ready to say good-bye to gangham style? singer psy says he will end the song with the start of the new year so he can focus on his next hit. celebrities also ringing in the new year through twitter. here's what some of them had to say. taylor swift says can't even verbalize how stoked i am for 2013. lindsay lohan says i am blessed to spend time with my mom, family and wonderful friends. very grateful. may only good things come this year. dino says start the new year by giving and you might be surprised how much you get. donate now at project lady

bug.org. time now is 38 after the top of the hour. coming up with the new year comes a slew of new laws including some that are sure to raise an eyebrow. >> they avoid the fiscal cliff so far but it is far from a done deal in the house. what does it mean for struggling economy?

>> up first around the world people are ringing in the new year. in shanghai they set it off with fireworks. a whole lot of them. also a laser light show to showcase tradition and technological advances. celebrations taking part in due

by. douche /* lit up the sky and the world's tallest building. byi big ben struck 12 in england as well. next to iran where military drills continue for a fourth straight day. iranian officials say their military tests fired a range of weapons yesterday including the new air defense system seen here. a scary scene in brazil rescue crashes right into the water. this is in rio de janeiro. they managed to make it out okay the swimmer was also saved a surfer. >> wow. >> oo in with the new year out with the old in the big apple. look at times square with the clean upfrom last night's new

year's eve if he is tiffities is still underway. 2,000 pounds of confetti blew through the air after the ball dropped that means a good party but a lot of sweeping up to do. >> a look at how crews will tackle the cleanup. good morning to you. these workers are unbelievable. i want them to come clean my apartment. you would barely know there was a party here last night. cleanup is well underway. many of the streets look very spiffy even a few hours after the huge party. it was a party that went off without a hitch. performances by taylor swift and train and the rapper psy of

gangham style. the ball looked beautiful 2688 waterford crystal triangles lit by led lights there you see the number of the day 2013, january 1st gs, 2013 we are live in times square. >> a lucky 13. >> yes. the senate passed a bill on the fiscal cliff but does it solve the problem? if the house gives it's stamp of approval what does this peen for the economy? let's ask the policy maker lynn brooks. >> this is a stopgap measure for the tax hikes that take place today. some of it revisited in a few months. some parts would be permanent if the house passes it such as the

tax rates? >> that's right. ever since 2001 when we first passed this it was temporary. that's why we are having the cuts now and having it today. it is hard to grow and invest when you don't know what the income tax rate is going to be. you don't know what the debt tax is going to be. this is one positive thing on the bill the spending side is a different story. it's a step in the right direction on tax polil but in terms of spending it gets us nowhere in the right direction. which hit our debt ceiling we will be talking this the next few months. the bill doesn't have a lot of spending cuts into it on balance it increases spending explain some of the areas where it does that. >> the big part of the bill where it increases spending is on the emergency unemployment

insurance. they decided emergency unemployment would be by the federal government. since the economy is still struggling they are looking at renewing this. this is new spending in the bill. there is virtually no spending. they got rid of this tweaking the tax code. that is something that a lot of house republicans probably won't like. but at this point in the game i think they have to pass it. >> one of the increases is social security payroll tax increase. owe b president obama was talking about letting that cut to lapse. it raises income tax for people of all levels on the social security tax to 6.2 percent which adds up to a lot of money

for a family. that's a big tax increase. >> the payroll tax holiday is going to effect folks. this is a dedicated tax that goes to fund social security. when they took the 2 percent out of social security we were funding the program through deficit spending. you probably shouldn't be continuing this temporary program for another year when social security has plenty of fiscal challenge of its own. >> you sport that move to let that lapse? >> i think it's a good policy to let the tax holiday expire. >> the tax stays for 400 for individuals 450 for households. it goes 20 percent above that threshold. there are people who say eerie time we raise that capitol gains tax total revenues for capitol

gains go down because people cut back investments which hurts the entire economy. what say you? >> this is about the art of compromise. when congress waits until the last minute to address a bill here we are january 1st and they are addressing a bill that expired last night. >> you mentioned the debt kreeging we hit it yesterday. we had security measures in effect. that will put it off for two months. but then we will be right back here at the bargaining table. our credit rating dropped the last time we had this debt ceiling debate. is the >> no question we will be back in two months having this discussion. credit rating is in trouble.

congress has to look at the spending side. the bill does nothing for spendi spendispend. that matters to americans because it effects every sij american by having a higher interest rate. it's very important. both sides were together cooperating and finding a way to cut spending. thank you soichl. so much. >> thank you. happy new year. >> 48 after the hour with the new year come a slew of new laws including some that could surprise you such as a ban on letting pigs run wild. some lawmakers quenching their thirst for regulations with this plastic water bottle ban. we will have more on that. right now let's check in with brian kilmeade he was coming up on fox and friends. happy new year. >> same to you. we are going to go over the next four-hours details on this plan

passed by the senate overwell canni -- overwhelmingly. see if it has any hope of passing the house. so far not so good. john will be joining us to look at the financials of this whole deal coming down and put it this way, he doesn't seem happy. lindsay graham will be here live that will be interesting and how did the deal come together in the last minute? can you say joe biden and rich mcconnell. we will have details with that get the inside story from chad who has done an incredible job refuse to go sleep for the last 300 days until this deal is done. will he bring the signed story from where we are headed from here and why is the president so happy and republicans upset. juliet is here, steve is here. these are her shoes. she only has won. left foot or right foot. sweet us now. back in a moment.

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>> seven minutes till the top of the hour. >> quick headlines the faa announcing it will inspect 109 boeing 737 airplanes. it comes after a hole tore open the top of a southwest airlines plane mid flight. the inspections could cost $5.2 million. folks in concorde, massachusetts are saying good-bye to 2012 and to bottled water. a new ban on selling the single serving plastic water bottles went into effect today. it's all part of an effort to cut back on waste. the store is caught selling the bottles face a $50 fine. just a short time ago we range in 2013, but along with the new year comes a slew of new laws and changes. they just went into effect at midnight across the country. many serious but others are a

little bit peculiar. >> a host of new laws will take effect across the country. gay skoums will be able to tie the knot legally. maryland is the first state south of the mason dixon line to ma gay marriage legal. laws in california and illinois are taking effect making it illegal for employers to make workers give access to their pass word protected social networking accounts. hundreds of thousands will ring in the new year with more money in their paychecks. most of the pay bumps stay for cost of living adjustments that account for inflation. washington state will hold the title of the highest minimum

wage at $9.19 an hour after the $0.15 new year bump kicks in. no more hogs running wild in kentucky. it will make it ill lael for residents to release ferrell or wild hogs back into the wild. >> up next in the rundown go to spoiler alert for you only after we kick the can down the road. that phrase sound familiar? they all have something in common. last chance to answer the question of the day. we want to know what you did to ring in the new year. you might have been sleeping if you are up now. we will read the e-mails next.

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>> two minutes till the top of the hour. a look at the good, bad and ugly. first the good at least for hillary clinton. she receives a big honor as she recovers from her blood clot. a gallup poll says the secretary of state is the 2012 most admired woman in the world. next the bad, a list has been released of the most annoying phrases of 2012. included on the list, fiscal cliff, spoiler alert. i have not said yolo, the acronym meaning you only live once. the ugly: over 200 p